Caterpillar (NYSE:CAT) Cut to “Hold” at Wall Street Zen

Wall Street Zen downgraded shares of Caterpillar (NYSE:CAT) from a buy rating to a hold rating in a report published on Saturday morning.

CAT has been the subject of a number of other reports. Rothschild & Co Redburn boosted their price target on Caterpillar from $650.00 to $700.00 and gave the company a “neutral” rating in a report on Wednesday, February 4th. HSBC increased their target price on shares of Caterpillar from $660.00 to $850.00 and gave the stock a “buy” rating in a report on Thursday, February 5th. DA Davidson lifted their price target on shares of Caterpillar from $569.00 to $650.00 and gave the company a “neutral” rating in a report on Monday, February 2nd. Weiss Ratings reiterated a “buy (b)” rating on shares of Caterpillar in a research note on Monday, December 29th. Finally, Citigroup lifted their target price on Caterpillar from $710.00 to $760.00 and gave the company a “buy” rating in a research note on Monday, February 2nd. Sixteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $702.95.

Caterpillar Price Performance

CAT stock opened at $755.72 on Friday. The stock’s 50 day moving average is $653.06 and its two-hundred day moving average is $555.96. Caterpillar has a 52-week low of $267.30 and a 52-week high of $789.81. The company has a market capitalization of $351.63 billion, a PE ratio of 40.16, a P/E/G ratio of 1.80 and a beta of 1.58. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Thursday, January 29th. The industrial products company reported $5.16 earnings per share for the quarter, topping analysts’ consensus estimates of $4.67 by $0.49. The business had revenue of $19.13 billion during the quarter, compared to the consensus estimate of $17.81 billion. Caterpillar had a net margin of 13.14% and a return on equity of 45.76%. The business’s quarterly revenue was up 17.9% compared to the same quarter last year. During the same quarter last year, the company earned $5.14 earnings per share. Analysts predict that Caterpillar will post 19.86 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, February 19th. Stockholders of record on Tuesday, January 20th were paid a $1.51 dividend. This represents a $6.04 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Tuesday, January 20th. Caterpillar’s dividend payout ratio is currently 32.09%.

Insider Buying and Selling at Caterpillar

In other news, insider Lange Bob De sold 22,656 shares of the company’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $720.11, for a total value of $16,314,812.16. Following the completion of the sale, the insider owned 79,953 shares in the company, valued at $57,574,954.83. This represents a 22.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Denise C. Johnson sold 39,138 shares of the business’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $681.08, for a total transaction of $26,656,109.04. Following the completion of the sale, the insider owned 43,350 shares in the company, valued at approximately $29,524,818. This trade represents a 47.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 141,172 shares of company stock valued at $96,514,673. 0.33% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CAT. Vanguard Group Inc. raised its position in shares of Caterpillar by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company’s stock worth $26,572,681,000 after purchasing an additional 442,164 shares during the period. State Street Corp lifted its stake in Caterpillar by 1.1% during the fourth quarter. State Street Corp now owns 35,388,550 shares of the industrial products company’s stock valued at $20,273,039,000 after buying an additional 385,204 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Caterpillar by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company’s stock worth $6,072,572,000 after buying an additional 94,524 shares during the period. Fisher Asset Management LLC raised its holdings in shares of Caterpillar by 0.6% during the fourth quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company’s stock valued at $5,438,408,000 after acquiring an additional 54,069 shares during the period. Finally, Bank of America Corp DE lifted its position in shares of Caterpillar by 16.0% in the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company’s stock valued at $3,860,457,000 after acquiring an additional 928,974 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Erste Group lifted its FY2026 EPS estimate for Caterpillar, which supports higher forward earnings expectations and can help justify the multiple investors are paying. Caterpillar FY2026 EPS Estimate Lifted by Erste Group Bank
• Positive Sentiment: Zacks highlights Caterpillar’s combination of earnings growth and price strength, flagging it as a stock to watch — a narrative that can attract momentum and institutional flows. Earnings Growth & Price Strength Make Caterpillar (CAT) a Stock to Watch
• Positive Sentiment: Media coverage (including Jim Cramer) reports hedge funds buying Caterpillar, signaling institutional demand that can prop up the share price and reduce downside. Hedge Funds Are Buying Power From Caterpillar, (CAT) Says Jim Cramer
• Neutral Sentiment: Benzinga aggregates analyst expectations for Caterpillar’s future — useful context on consensus targets and ratings but mixed in immediate directional impact unless analysts change price targets. Analyst Expectations For Caterpillar’s Future
• Negative Sentiment: A valuation-focused piece points out that recent powerful short- and long-term gains have pushed Caterpillar’s multiples higher — a reminder that elevated P/E and stretched sentiment could prompt profit-taking or slower near-term upside. Assessing Caterpillar (CAT) Valuation After Powerful Short And Long Term Share Price Gains

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.